Enron's Use of Special Purpose Entities Led To

question 5

Multiple Choice

Enron's use of Special Purpose Entities led to:

• A) Widespread, and wholly unexpected, embezzlements of funds
• B) Widespread embezzlements of funds that could had, and should have, been readily anticipated
• C) The accounting profession developing the concept of consolidated financial statements
• D) Rule changes in GAAP

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Definitions:

Deficit Needs

Described by Maslow, these are basic needs that must be met before an individual can focus on higher-level psychological needs.

Clinical Patients

Individuals who are receiving or have received treatment and care for psychological or physical health conditions.

Behaviorism

A school of psychology that focuses on observable behaviors as the subject matter and disregards internal processes like thinking.

Belongingness Needs

A fundamental human need to form and maintain strong, stable interpersonal relationships.